O-LEVEL ECONOMICS

REVISION 04

PAPER 2
 Aggregate Demand / Total Demand
AD = C +I + G + (X-M).

1) Discuss whether or not an increase in the rate of income tax will

reduce inflation. [8]
2) Discuss whether or not a rise in investment could increase a country’s
economic growth rate. [6]
3) Discuss whether or not supply-side policy measures can reduce
inflation. [8]
 Exchange Rate & BOP

1) Explain two reasons/ causes of a fall in a country’s foreign exchange

rate. [4]
2) Discuss whether or not a fall in a country’s foreign exchange rate
could increase economic growth. [6]
3) Discuss whether or not a rise in a country’s foreign exchange rate
worsens its current account. [6]
4) Discuss whether or not an increase in a current account surplus will
benefit an economy. (8) TB
 Dis/Economies of Scale

1) Discuss whether or not having fewer firms in a market will benefit

consumers. [8] ON 2023
2) Discuss whether or not mergers benefit an economy. [8] MJ 2020
3) Discuss whether or not a firm will benefit from an increase in its
output. [8] MJ 2022
Any Question?